Will bank close our account when we file bk?

[Emmy]

We have a checking account with a credit union. They also hold our truck loan, a visa account, and line or credit loan. While we plan to hopefully reaffirm the truck loan, we at the same time plan to get the other 2 unsecured credit loans discharged. Do you think the bank will drop us as customers? We would have a hard time getting another bank account because we our in the chex system for a lousy $50 of overdraft fees from different bank when we closed the account.

[emoney]

Pay those fees today. Chex System can hold you hostage for up to five years. With the Patirot Act Bank are required to run backgounds checks before opening new accounts, and you really owe the money.
The CU will probably not cancel your checking account, but kiss good-by to other credit from them for a long time.
By paying the OD fees in Chex System in a few years other banks will be open to you.
Thanks,
enoney

[HHM]

For as nice as CU's are when you are working with them, they are some of the testiest of institutions when you file BK.

As emoney pointed out, you can forget about getting credit from them ever again, but I do not think they will close your checking account, but such a move is not unheard of when it comes to CU's. But don't let that stop you from filing Bk.

[Emmy]

No it won't stop us. We are at the point that we don't really have the choice to not file BK. If they do close our account, I did some searching and they do have second chance banking through some banks. It usually runs from $8-$12 a month to just have a normal checking account. Another option is to pay the money we owe and our state has a 6 hour course through a university you can take and then apply for a decent, no monthly fee account at a local normal CU or well known bank.

[Bobby'sGirl]

My credit union closed my account last week when I filed

But not before grabbing the couple hundred $$$ left in the savings and checking accounts to apply to the credit card issued through them that was included in BK. I was fortunate to have stopped my direct pay deposit from school the month before filing or that could have been grabbed as well. My daughter's account was frozen because I was listed on it as well, but lawyer says they can't keep her funds and has proof it was set up as a "custodial" account when she was a minor and her money has to be released to her.

In other words when dealing with a credit union: beware! So keep a minimal amount in there in case it happens that way with your credit union.

[CAB_44]

yep~ Bobby's Girl has it right~ they'll take out any money they can get when you file if you owe on any loans there.....

[annikasaunt]

My credit union sent me a letter about a month after discharge telling me to come in and close my accounts with them. They could not offer their services to anyone who caused the credit union a loss. At least they let me have my money that I had left there. I had a big personal loan with them that was discharged. I really loved this bank and was hoping that they would let me keep the accounts, but they didn't. They did let my daughter keep her account there. It has my name on it, but they've never said anything about it. She deposits 1/2 her paycheck weekly, so I must say good things about them for that!

[9877donna]

A piece of advice: Close out your savings and checking accounts you have with this credit union.Do it before you file.They WILL take any money left in those accounts when you file BK so be prepared.
And Good Luck!
Donna

[ugh]

We had a US Bank checking account and we included a US Bank credit card in BK7. We expected them to close our checking account, but they didn't. However, I know this is not always the case. I would make sure you open a new checking account before you file. Better safe than sorry.

[kcj]

We got a letter from the CUs shortly after filing. One of them closed my checking and savings, DHs savings, and his business account. The other one didn't close his account, but took away any access to online services.

[fljb]

close account

do I need to close my account if i do not have an account that I am filing BK on at my CU? My kids have savings plans there with me as cosigner since they are minors - I do NOT have a CC with them or any other loan I am filing BK on. Should my kids accounts be OK? This may sound dumb- but I want to make sure ... I am looking into a c7 with CC's only - all from major companies. thanks!!

[WoodSprite]

do I need to close my account if i do not have an account that I am filing BK on at my CU? My kids have savings plans there with me as cosigner since they are minors - I do NOT have a CC with them or any other loan I am filing BK on. Should my kids accounts be OK? This may sound dumb- but I want to make sure ... I am looking into a c7 with CC's only - all from major companies. thanks!!

It's not dumb, it's a good question. I had two checking accounts with a local bank, and since I had no loans or other debt with them, I didn't need to close them. They rode out the BK without any trouble at all.

HOWEVER, you will need to be sure that you don't have more than the amount of your allowable exemptions in those accounts on the day you file, or those balances will be subject to seizure by your trustee. I don't know about the kids' accounts, but I'm sure someone here will answer.

Depending on where you live, and what else you're exempting, your balance could be a couple thousand dollars or it could be "as close to zero as you can get", as mine was. But please be sure to ask your attorney about this before you file, and understand that any checks or pending auto-pays must have cleared by the date of your filing. The trustee will just look at the snapshot of your actual balance that day.

[liz417]

Hi Emmy,
I've read that CU request that you reaffirm (DON'T REAFFIRM) ALL loans with them in order to keep vehicle(s) and/or checking, savings, etc. It's not worth it, find a new bank.

[momof5]

Our CU closed our accounts as soon as they found out we were going to surrender our vehicle. They snagged the 4$'s and some change and applied it to the car. It still burns me as legally I owed zero but thats a whole 'nother issue.

To be honest I loved my CU checking and savings. The lines were never long and they were always so friendly. Transactions showed up online within minutes. No fees. Once we filed BK though the love was definately gone on their part so its probably for the best.

We do still have our home equity account with them that I am paying. I feel anxious every month I need to go there. I cannot wait to be completely done.

[Keebler]

Our CU closed our accounts as soon as they found out we were going to surrender our vehicle. They snagged the 4$'s and some change and applied it to the car. It still burns me as legally I owed zero but thats a whole 'nother issue.

To be honest I loved my CU checking and savings. The lines were never long and they were always so friendly. Transactions showed up online within minutes. No fees. Once we filed BK though the love was definately gone on their part so its probably for the best.

We do still have our home equity account with them that I am paying. I feel anxious every month I need to go there. I cannot wait to be completely done.

Part of my preparation for filing included opening accounts at a couple of different credit unions in anticipation of trouble with my exisitng ones. I did it while my credit was still okay and I switched the direct deposit over and everything. It was probably the best thing I did for myself.

One credit union in particular (www.dcu.org) is my new favorite despite being nearly 2,000 miles away! They literally have no local branches or ATM machines or anything here.

They offer free bill-pay so I can pay anybody any time. They rebate up to $5 per month of ATM surcharges for visiting the "wrong" ATM. They also let me do ACH transfers in and out of my account from within my Internet banking logon. (Inbound are free and outbound are $2 or $5) The newest thing is the ability to deposit checks from HOME! I originally chose them because they have a no-fee collateralized VISA card I'll be getting soon.

What I didn't realize before is how several credit unions have a co-op system where you can visit another branch from another credit union and perform transactions almost as if you were at your home branch.

Now I can choose from three or four local credit unions who are co-op members. I pick the one with the shortest lines, the best hours and the most helpful staff. I even get free ATM transactions at the one local credit union I included in my bankruptcy.

I guess my point is that you should consider one of these national credit unions that isn't local and you might be able to do your banking at the local branch that you like so well anyway!

Here's the link to find local co-op credit unions (link)